Adidas 2000 Annual Report Download - page 81

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adidas-Salomon ANNUAL REPORT 2000
77
Notes to Consolidated Financial Statements
14. Other Current Liabilities
Other current liabilities consist of the following:
(euros in thousands) Dec. 31 Dec. 31
2000 1999
Liabilities due to personnel 12,196 22,155
Tax liabilities other than income taxes 14,985 21,270
Liabilities due to social security 16,644 7,213
Liabilities due to affiliated companies 2,459 1,757
Deferred income 339 1,194
Sundry 43,765 42,890
Other current liabilities 90,388 96,479
15. Pensions and Similar Obligations
The Company sponsors and/or contributes to various pension
plans. The benefits are provided pursuant to the legal, fiscal
and economic conditions in each respective country.
The provision for pensions and similar obligations consists of
the following:
(euros in thousands) Dec. 31 Dec. 31
2000 1999
Defined benefit plans 70,071 68,611
Thereof: adidas-Salomon AG 60,357 54,261
Similar obligations 14,950 11,656
Pensions and similar obligations 85,021 80,267
The actuarial valuations of defined benefit plans are made at
the end of each reporting period. Similar obligations include
mainly long-term liabilities under a deferred compensation plan.
The funds withheld are invested by the Company on behalf of
the employees in certain securities, which are presented under
other non current assets (see also note 11).
The expenses recognized for defined benefit and contribution
plans are presented in selling, general and administrative
expenses. Pension expenses are as follows:
(euros in thousands) 2000 1999
Defined benefit plans 11,072 16,159
Thereof: adidas-Salomon AG 7,798 10,128
Defined contribution plans 10,410 9,051
Pension expenses 21,482 25,210
Defined Benefit Plans
The retirement plans of adidas-Salomon AG cover substantially
all employees. They are financed internally through provisions.
In 1999 one plan of adidas-Salomon AG was financed, subject
to funding limitations in the German tax law, through a legally
independent pension fund “Unterstützungseinrichtung der Firma
adidas-Salomon AG e.V.”.
adidas-Salomon AG provided for the excess of the obligation
arising from this plan over the amounts contributed to the fund
pursuant to IAS 19 (revised 1998). Further, adidas-Salomon AG
has borrowed approximately c 11 million from this fund as at
December 31, 1999, which was included in the provision for
pensions. Effective December 31, 2000 all assets and liabilities
as well as future obligations from the above mentioned inde-
pendent pension fund are transferred to adidas-Salomon AG.
Additionally, the Company sponsors various other defined
benefit plans outside Germany, which are not significant. The
disclosures below relate hence solely to the defined benefit
plans of adidas-Salomon AG.